Liverpool took the perfect place - a Mersey derby - to re-establish their credentials as a genuine championship contender.

After a shaky start for a side with five trophies in six months, serious doubts were being expressed about them as they slumped to successive league defeats.

But although Kevin Campbell gave Everton false hope with a shock early goal, all the quality of Liverpool's England stars in particular shone through in convincing fashion.

Everton tried, how they tied, but they couldn't handle the youthful abilities of Steven Gerrard, and after the young midfielder had smashed a fine equaliser, the men from Anfield took over with a Michael Owen penalty - his 13th goal for club and country this season - and a fine solo effort from John Arne Riise to establish an unassailable platform for success.

Liverpool?s team selection was dominated by the decision to leave Nick Barmby at home, and the logic of Gerard Houllier's approach must surely be doubted.

The Barmby situation has diminished over the months but suddenly it is back on the agenda. And does Houllier believe that by leaving Barmby out of his first game back at Everton that the problem will go away?

Maybe he should remember what happened to Paul Ince after he left West Ham for Manchester United. The former England man managed not to be in several United teams at Upton Park, but the atmosphere just got worse and when he did finally play at Upton Park he found a hate-filled reception.

Houllier left Robbie Fowler on the bench, along with last season?s derby match winner in Gary McAllister, while Everton had Paul Gascoigne as one of their substitutes.

The match was preceded by a minutes' silence in memory of those who died in the terrorist outrages in America. Skippers Kevin Campbell and Sami Hyypia laid wreathes on the flags of the USA and Britain, which were spread on the turf.

There was little doubt Everton were going to hoist long balls into the box and on four minutes they did just that and scored. Dave Unsworth's angled delivery from the left was knocked down by Duncan Ferguson for Campbell, who turned Hyypia far too easily just inside the box to leave Jerzy Dudek totally exposed to a swift, right-footed shot from 12 yards.

But on 12 minutes Liverpool were level. Danny Murphy and Gregory Vignal created space on the left, the French teenager lifted the ball into the box and it flicked off a defender to Gerrard, who went past Gary Naysmith to lash a superb drive into the far corner.

Emile Heskey should have done better with a fortunate opportunity on 22 minutes. Murphy?s drive hit a defender and fell to the big striker on the edge of the box but his left-footed effort was saved low down by Paul Gerrard.

Liverpool slowly started to utilise their greater pace and skill, and Liverpool's youthful left flank of John Arne Riise and Vignal can take great credit from the build-up to their side taking the lead on 29 minutes.

Riise's clever turn and pass into Vignal's path created the opening. The left-back was tripped but continued his run and referee Durkin played excellent advantage.

The next pass, into Heskey's feet opened up the left of the box and as the England striker touched the ball past Unsworth, the Everton defender clumsily ran into the Liverpool man for a spot kick that Owen cooly placed into the bottom corner.

From then until the break, Liverpool started to blossom. The movement, pace and drive of Gerrard frightened the life out of Everton's five, sometimes six defenders with Abel Xavier playing deep. Gerrard and Didi Hamann both had glorious chances created as Liverpool cut through Everton with alarming regularity.

Everton changed their approach after the break and took off Xavier and Unsworth to allow Tomasz Radzinski in up front for his first game of the season for his new club, and Gascoigne into central midfield, virtually a 4-3-3 formation.

But before the new system had much chance to operate Liverpool got their third. Riise raced down the left, leaving Steve Watson for dead on the edge of the box, and lashed a left-footer into the far corner.

Everton's response followed a Gazza free-kick from the left after Jamie Carragher had felled Ferguson.

Dudek bravely punched the ball away but it was lofted back for Campbell to power in a header that Stephane Henchoz headed off the line.

Then Thomas Gravesen's well-timed ball put Campbell in for a 12-yard shot that Dudek saved superbly as he hurled himself out.

Everton, running out of ideas now, took off Niclas Alexandersson and allowed youngster Tony Hibbert into the action, before Murphy became the first booking of the game for a trip on Gascoigne. It was Murphy's last involvement before being substituted for Gary McAllister on 77 minutes.

Vladimir Smicer came on for Gerrard with six minutes left, the youngster's job done.

Liverpool were now content to contain and defend deep, looking for the quick break as Everton had no choice but to push forward.

Dudek saved bravely twice in quick succession from Campbell in the dying minutes, but the memory really was of a side who last season had snatched victory in this game in the dying seconds and were more than fortunate. This time they were on cruise control long before the end.